|
|
|
|
|
Utility Seeks Potential Retail SOS Service, Would Be Authorized To Restrict Customer Shopping
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Kennebunk Light & Power District (KLPD) in Maine has sought Maine PUC approval for tariff changes that would implement a load aggregation for its electricity Standard Offer service (default service), with such load aggregation potentially including a retail-style Standard Offer program
Under Maine PUC rules, a consumer-owned transmission and distribution utility, such as Kennebunk Light & Power, may use a "load aggregation" process for standard offer service, with such being either a wholesale or retail load aggregation
Kennebunk Light & Power said that it will consider
proposals for a new retail standard offer provider or a
new entity to provide KLPD with energy at wholesale under the terms of a full requirements supply
contract
The load aggregation process may be seen as similar to opt-out municipal aggregation, except that the utility, rather than a municipality, is running the aggregation. Load aggregation does not need to comply with the otherwise prescriptive Standard Offer rules governing standard SOS procurement
Regardless of whether the load aggregation is wholesale or retail, the PUC's existing rules allow restrictions on customer shopping during the term of the load aggregation, and provides for an opt-out period for customers to take service from a competitive retail supplier rather than the load aggregation
Although the rules could be more explicit, the rules provide that a load aggregation, "must contain provisions for service to all customers within the service territory that are not taking service from competitive electricity providers."
Such language appears to prohibit the inclusion of shopping customers in the aggregation on an opt-out basis. The exclusion of shopping customers from opt-out enrollment is further implied under a rule governing what occurs to a shopping customer whose retail supplier contract ends after the load aggregation's start date and who did not provide an opt-out notice (implying that there are circumstances in which customers are served by competitive retail suppliers without providing an opt-out notice).
Notably, the opt-out notices to be sent to customers concerning the load aggregation (discussed further below) are not required to include load aggregation prices
The current rules provide that utilities may restrict customers, who do not opt out, from subsequently leaving the aggregation for competitive retail supply during the aggregation's term until the customer completes a minimum stay (with no specific minimum stay included in the rule)
Although Kennebunk Light & Power (KLPD) is not explicit as to any potentially sought shopping restrictions, in its tariff KLPD would state that the opt-out notice required to be provided to customers would include, "a prominent statement that customers that do not opt-out of the load
aggregation will be required to continue to take service from the load
aggregation throughout the term."
However, this language merely mirrors the rule's language for opt-out notices, and, given the additional language below, it's not clear what specific restrictions Kennebunk Light & Power potentially may impose on shopping for customers placed into the aggregation, if any
Elsewhere in the proposed tariff, Kennebunk Light & Power is less specific concerning any restrictions on customer shopping, with the tariff only stating that (again, mirroring rule language), "Customers that do not opt-out of the standard offer load
aggregation under part (b) may be required to take standard offer service at specified
load aggregation prices for a pre-specified term," with the language using the term "may" rather than "shall," and with no pre-specified term length for a minimum stay proposed in the tariff
Kennebunk Light & Power is also seeking waivers from certain of the existing timelines in the rules, arguing that such waivers are needed in order to avoid risk premiums in pricing from load aggregation suppliers
Notably, Kennebunk Light & Power seeks a waiver of the current rule that provides that a customer seeking to opt-out of the load aggregation must provide notice to the utility at least 30
days prior to the initiation of load aggregation service
EnergyChoiceMatters observes that Kennebunk Light & Power's filing is unclear in several matters. The filing, dated March 18, 2026, also says that waivers are sought so that, "KLPD can finalize the terms of an
energy supply contract well in advance of April 2025 [sic]," and that KLPD seeks waivers so that KLPD can, "obtain customers’ opt-out decisions prior to the winter period."
Kennebunk's current SOS supply agreement is set to expire at the end of the year. Though KLPD is not explicit as to a load aggregation start date, such start could potentially be the start of next year, with KLPD potentially seeking to conduct the opt-out prior to the start of winter 2026-2027
In most respects, Kennebunk Light & Power's filing does not appear to alter the length of time that customers are provided to make an opt-out decision. Rather, KLPD appears to seek only to accelerate when this period may begin, so that aggregation service may start sooner (for example, rather than provide a 60-day opt-out window which closes 30 days before the aggregation's start date, KLPD would have the opt-out period close right before the aggregation's start date, rather than burning 30 days between the end of the opt-out period and the start of the aggregation).
However, Kennebunk Light & Power's filing also includes a statement which may be read as intending to change the period of time during which a customer may "exercise" their opt-out right, rather than merely shifting the existing length of time
Specifically, Kennebunk Light & Power's filing states, "The 30 day timeframe envisioned by Chapter 301 for customers
to exercise their opt-out rights prior to the initiation of load aggregation service creates an undue
market risk for potential suppliers as a result of District’s relatively small load, especially when
the electricity supply market is volatile."
However, as described above, the 30-day period concerns the length of time between the deadline for the submission of an opt-out by a customer and the start of the aggregation, not the length of the opt-out period itself (which, under rule, appears to be a minimum of 60 days, and whose ultimate length is contingent on when the utility actually sends the opt-out notice, which may be anywhere from 120 days to 90 days before the aggregation's start date)
As further discussed below, Kennebunk Light & Power does state that, "Granting this waiver
does not alter the effective time period by which customers must exercise their opt-out right,
after receiving notice of load aggregation service[.]"
KLPD would specifically add language to its tariff stating that the opt-out must be provided
30 days prior to the initiation of load
aggregation service, "unless some other timeframe is authorized by the Commission."
KLPD stated, "With KLPD’s proposed language, the Commission will
have discretion to allow KLPD to seek an earlier timeframe for customers to provide notice of
their decision to opt-out when market conditions or other circumstances require, increasing the
likelihood that KLPD may secure competitive bids."
Elsewhere in the filing, Kennebunk Light & Power describes its sought waiver as requiring that an opt-out must be provided no more
than 60 days following Kennebunk Light & Power's provision of notice of the aggregation to customers (discussed below)
Kennebunk Light & Power (KLPD) averred that this change, "does not alter the effective time period by which customers must exercise their opt-out right,
after receiving notice of load aggregation service, but simply allows this timeframe to track the
actual notification to be provided by KLPD."
However, the current rules require that notice to customers of the aggregation shall be provided at least 90 days but
no greater than 120 days before the initiation of aggregation service (as such, the length of the opt-out period is unchanged only under the assumption that the utility would have sent the notice no earlier than 90 days before the start of service, as the opt out period under rule could theoretically last 90 days, if 120-day notice is provided to customers)
Kennebunk Light & Power further requests a waiver of the requirement to inform customers of the aggregation 90 to 120 days prior to the program's start date, so that KLPD may, "notify customers of the proposed load
aggregation as soon as practicable."
Kennebunk Light & Power said that providing notice closer to the aggregation start date is needed, "given recent market volatility in supply prices."
"If KLPD secures
a supply bid, the supplier may not be able to hold terms indefinitely," Kennebunk Light & Power said
Under the proposed change in the notice timeline, Kennebunk Light & Power said that, "KLPD will be able to better secure competitive pricing for its customers and finalize the
terms of an energy supply arrangement in the interest of its customers."
Specifically KLPD, "requests that the Commission also waive the 90-120 day period set forth under Section 10(I), by which KLPD is to provide notice to customers of the load aggregation service, and requests permission to notify customers of the proposed load aggregation as soon as practicable."
For customers currently with a retail supplier whose retail supplier contract term ends during the load aggregation's term, Kennebunk Light & Power would place such customers into the aggregation upon the end of retail supplier service if such customer did not previously opt-out. As such, even if shopping customers are not enrolled on an opt-out basis, shopping customers wishing to continue shopping service may still need to affirmatively opt-out to preserve their ability to shop in the future.
Kennebunk's tariff language, which generally follows the existing rule, would allow alternative standard offer pricing (including market-based rates), distinct from the load aggregation price, for customers joining the aggregation during the middle of its term due to the end of the customer's retail supplier contract, if such returning customer did not notify Kennebunk Light & Power of their expiring retail contract (when such notice of expiring contract must be provided is not specifically stated; it's unclear if such notice must be provided during the opt-out period)
New service (move-in, etc) residential and small commercial customers during the term of the aggregation must be offered the load aggregation's regular price. The utility would be authorized to create a distinct default service price for new service medium and large commercial customers, and for expansions of existing load above a pre-specified demand level
New service customers during the load aggregation's term may elect service from a retail supplier. A deadline for a new service customer to make a choice to shop and avoid being subject to any potential minimum stay in the aggregation was not specified.
Kennebunk is not specific as to whether all customer classes would all receive a single standard load aggregation rate, or if the standard load aggregation rate would vary by customer class. The rules are silent on this issue
Docket 2026-00067
ADVERTISEMENT Copyright 2026 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
March 19, 2026
Email This Story
Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Channel Partner Manager - TX -- Retail Supplier
• NEW / Refreshed 2/24/26 -- Manager, ISO Coordination (electricity), Retail Supplier
• Refreshed 2/2/26 -- Account Executive (Commercial Retail Energy)
|
|
|
|
|